Martin Lewis warns viewers about drastic car insurance changes
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Martin Lewis said car insurance often worked with “weird counter logical savings” which meant the bigger policy could sometimes be cheaper. He said selecting fully comprehensive can make insurance firms think you are a “lower risk” driver.
As insurance is all based on risk, this could see prices tumble despite drivers getting more cover.
Speaking on the Martin Lewis Money Show, he urged drivers to check prices for both fully comprehensive and third-party before seducing cover.
He said: “Car insurance, weird counter logical savings.
“All because car insurance is based on actuarial risk profiles.
“So if you want the cheapest policy you’d think third parties cheapest because it’s lower cover.
“Not necessarily, the mere fact of selecting comprehensive can make them think you’re a lower risk and out rise the fact it’s a bigger policy and be cheaper, so check both.”
Confused.com said it was “often the case” comprehensive cover is more expensive than third-party, “but not always”.
They confirmed better cover can work out “as cheap” as third-party meaning drivers “don’t necessarily have to compromise”.
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They said comprehensive cover can sometimes be cheaper because a lot of high-risk drivers go for third-party cover.
They added: “As a result, the statistics begin to skew towards a higher number of claims on third-party policies.
“This means that the overall cost of third-party cover could go up.
“That’s why it’s worth checking the cost of all levels of cover, just in case.”
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